NEW DELHI — The Indian rupee extended its gains for a fourth consecutive session on Wednesday, rising against the U.S. dollar as easing geopolitical tensions and a sharp drop in oil prices lifted investor sentiment.
The currency appreciated by 40 paise, or about 0.4 percent, to close at 92.61 per dollar, compared with its previous close of 93.
The rally followed a two-week ceasefire agreement between the United States and Iran, which helped calm global markets after weeks of volatility tied to the West Asia conflict. U.S. President Donald Trump said American forces had been instructed to stand down and called for the immediate reopening of the Strait of Hormuz, a key global oil shipping route.
Lower crude prices also supported the rupee. Brent crude futures fell nearly 16 percent, or $17.39, to an intraday low of $91.88 per barrel, while U.S. West Texas Intermediate crude dropped almost 20 percent, or $21.90, to $91.05.
At home, the Reserve Bank of India reinforced stability by keeping its benchmark repo rate unchanged at 5.25 percent.
The ceasefire announcement boosted global risk appetite, reversing weeks of market stress that had pushed several asset classes into correction territory since the conflict began about six weeks ago.
However, analysts cautioned that the rally’s durability depends on whether the ceasefire holds and energy flows through the Strait of Hormuz return to normal levels.
“Ceasefire has been tentatively accepted by Iran, though the possibility of violations remains, with Israel continuing strikes that could trigger retaliation,” analysts said.
They added that the rupee’s current levels appear favorable for importers, even as foreign portfolio investors continue to be net sellers in Indian equities.
Meanwhile, precious metals moved higher. Gold and silver prices opened stronger on the Multi Commodity Exchange, tracking gains in global bullion markets.
Gold futures for June 2026 were trading at Rs 1,53,944 per 10 grams, up Rs 3,655, or 2 percent. Silver futures for May rose Rs 13,422, or 6 percent, to Rs 2,44,770 per kilogram. (Source: IANS)
